-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WBdT7bnBqeMmpBgbZu9y/0yCdu63xn/JG92E3F+YhqnrSKt4M4aq2Gjr8iL8zfXf Wgodmm/onci+pHbP74rxRA== 0001161697-08-001042.txt : 20080919 0001161697-08-001042.hdr.sgml : 20080919 20080919115150 ACCESSION NUMBER: 0001161697-08-001042 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080919 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080919 DATE AS OF CHANGE: 20080919 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUNWIN INTERNATIONAL NEUTRACEUTICALS, INC. CENTRAL INDEX KEY: 0000806592 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 562416925 FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 033-10456 FILM NUMBER: 081079801 BUSINESS ADDRESS: STREET 1: 6 YOUPENG ROAD CITY: QUFU, SHANDONG STATE: F4 ZIP: 273100 BUSINESS PHONE: (86) 537-4424999 MAIL ADDRESS: STREET 1: 6 YOUPENG ROAD CITY: QUFU, SHANDONG STATE: F4 ZIP: 273100 FORMER COMPANY: FORMER CONFORMED NAME: NETWORK USA INC DATE OF NAME CHANGE: 20000731 FORMER COMPANY: FORMER CONFORMED NAME: PACIFIC RESOURCES INC DATE OF NAME CHANGE: 19870605 8-K 1 sunwin8-k.htm 8-K FOR 09-19-2008

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

___________

 

FORM 8-K

___________

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):   September 19, 2008

 

SUNWIN INTERNATIONAL NEUTRACEUTICALS, INC.

(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)

 

Nevada

033-10456

56-2416925

(STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION)

(COMMISSION FILE NO.)

(IRS EMPLOYEE IDENTIFICATION NO.)

 

6 Youpeng Road, Qufu, Shandong, China 273100

(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

 

(86) 537-4424999

(ISSUER TELEPHONE NUMBER)

 

(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 



Item 2.02.  

RESULTS OF OPERATIONS AND FINANCIAL CONDITION

 

On September 19, 2008, Sunwin International Neutraceuticals, Inc. (the "Company") issued a press release to announce financial results for the three months ended July 31, 2008.

 

A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.

 

The information furnished with this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 9.01.  

FINANCIAL STATEMENTS AND EXHIBITS

 

(d)

Exhibits

 

99.1

Press Release of Sunwin International Neutraceuticals, Inc. dated September 19, 2008 (furnished herewith).

 

- 2 -



SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

 

SUNWIN INTERNATIONAL NEUTRACEUTICALS, INC.

 

Date: September 19, 2008

By: /s/ Dongdong Lin

 

Dongdong Lin

 

Chief Executive Officer

 

- 3 -


EX-99 2 ex991.htm PRESS RELEASE DATED 09-19-2008

Exhibit 99.1


 

CONTACT:

Company:

Investors:

 

Sunwin USA

Magnolia Investor Relations

 

Jeff Reynolds

Matt Kreps

 

972-377-2339

469 362 5960

 

jreynolds@onlysweet.com

matt@magnoliair.com

 

FOR IMMEDIATE RELEASE

 

Sunwin International Neutraceuticals Reports Revenue, Cash Increases

for Profitable 2009 First Quarter

Q1 2009 revenue increases 48% to $6.2 million; Cash increases 29% to $7.7 million

Book value increases to $31 million or $0.36 per share

 

Qufu, China, September 19, 2008 – Sunwin International Neutraceuticals, Inc. (OTCBB: SUWN) a leader in the production and distribution of Chinese herbs, veterinary medicines and one of the world’s leading producers of all natural, zero calorie Stevia in China, today announced its first quarter results for fiscal 2009 for the quarter ended July 31, 2008.

 

Financial Highlights:

 

Revenues for the first three months of fiscal 2009 increased 48% to $6.23 million as compared to revenues of $4.22 million in the first three months of fiscal 2008. Net income the first three months of fiscal 2009 was approximately $297,000 as compared to approximately $309,000 in the first three months of fiscal 2008. The slight decline in net income was primarily attributable to two factors. First, China experienced substantial increases in the price of coal in the current quarter as compared to 2008 which resulted in higher operating costs at our production facilities as well as increased transportation costs four sourcing raw materials. Energy prices have begun to moderate and we believe that gross margins should improve in the coming quarters. Second, income taxes in the current quarter were approximately $74,000 as compared to no taxes paid in the same period in fiscal 2008.

 

Cash and cash equivalents as of July 31, 2008 increased 29% to $7.66 million as compared to cash and cash equivalents of $6.81 million as of April 30, 2008. Working capital (current assets less current liabilities) as of July 31, 2008 increased 18% to approximately $13.83 million, as compared to working capital of $11.73 million at April 30, 2008.

 

President and Chairman Laiwang Zhang, commented, “Sunwin posted strong first quarter sales growth despite Chinese government restrictions related to the 2008 Beijing Summer Olympics. Total stevia deliveries continue to grow compared to a year ago attributable to increased marketing and our plant expansion. Pricing remains strong due to growing global demand and we anticipate improvements in margins in the coming quarters. We are confident the business is on track for continued growth in revenue and increased profitability generating cash reserves and funds for increased investment in vertically scaling in our markets.”

 



Sunwin Internationoal Neutraceuticals, Inc.

September 19, 2008

 

 

Outlook:

 

Sunwin expects to continue its growth through ongoing expansion efforts in major markets including the United States while deepening its product lines in its veterinary feeds as well as stevia grades for wholesale distribution.

 

The company has continued to execute on its growth plans by broadening its product offerings and capabilities through its recently announced acquisition of a 60% interest in Qufu Shengwang Stevia Biology and Science Company. Under terms of the agreement to acquire Qufu Shengwang, the selling parties entered into a “make good” agreement in which the selling parties agreed to return to Sunwin a prorata number of the shares they acquired as part of this transaction in the event that Qufu Shengwang does not earn a minimum of $5,000,000 in net income over a period of 36 consecutive months after completion of the acquisition. Management believes this “make good” agreement demonstrates the confidence that the Qufu team has in their earnings expectations. The acquisition of Qufu Shengwang has a vertical component by monetizing waste components in Sunwin’s stevia refinement process while expanding the company’s presence in animal and veterinary markets.

 

Sunwin continues to grow its United States and North American presence using its proprietary Only Sweet™ brand of dietary supplements sold at approximately 4,000 retail stores in the US. Only Sweet unit sales increased 35% during the first quarter of 2009 as compared to the first quarter of 2008 while operating expenses decreased 63% as a result of a more streamlined organization and the completion of capital initiatives made in fiscal 2008. The company will continue to pursue additional opportunities for expansion including partnerships with major consumer packaged goods providers and beverage companies seeking alternatives to chemically based zero calorie sweeteners that are falling out of favor with consumers.

 

For Fiscal 2009, the company expects ongoing revenue growth compared to prior year periods and expects to improve its operating margins as energy costs moderate and we increase facility utilization. Additionally, the Qufu Shengwang acquisition will enable us to use our stevia byproducts for production of their feeds. The company expects its past investment in facilities expansion to produce increasing tonnage of Stevia, including a growing component of higher grade product to meet increasing demand in the food and beverage production channel. Sunwin will continue to focus on production of premium value highly refined Stevia grades. These highly refined grades will meet growing demand from potential food and beverage partners in the mass retail channels with whom Sunwin began early stage discussions regarding the use of its stevia.

 

Company Background:

 

Sunwin International Neutraceuticals, Inc. engages in the areas of essential traditional Chinese medicine, zero calorie natural sweeteners (stevia), and veterinary medicines and feeds prepared from 100 percent organic herbal ingredients. As an industry leader in agricultural processing, Sunwin has built an integrated global firm with the sourcing and production capabilities to meet the needs of consumers throughout the world. Sunwin also makes such value-added products as specialty veterinary food ingredients and specialty feed ingredients. For more info about Sunwin, please visit http://www.sunwin.biz

 

Page 2 of 5



Sunwin Internationoal Neutraceuticals, Inc.

September 19, 2008

 

 

Safe Harbor Statement

 

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Sunwin International Neutraceuticals, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimated,” “intends,” “plans,” “believes” and “projects”) may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our guidance and expectations regarding revenues, net income and earnings. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations: our ability to effectively integrate our acquisitions and to manage our growth and our inability to fully realize any anticipated benefits of acquired business; our need for additional financing which we may not be able to obtain on acceptable terms, the dilutive effect additional capital raising efforts in future periods may have on our current shareholders; our dependence on certain key personnel; the lack of various legal protections in certain agreements to which we are a party and which are material to our operations which are customarily contained in similar contracts prepared in the United States; the business operating risks and new technology in the business we seek to enter into and currently operate in; the effect of changes resulting from the political and economic policies of the Chinese government on our assets and operations located in the PRC; the influence of the Chinese government over the manner in which our Chinese subsidiaries must conduct our business activities; the limitation on our ability to receive and use our revenues effectively as a result of restrictions on currency exchange in China; our ability to enforce our rights due to policies regarding the regulation of foreign investments in China; our ability to comply with the United States Foreign Corrupt Practices Act which could subject us to penalties and other adverse consequences; and our ability to establish adequate management, legal and financial controls in the PRC.

 

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

 

Page 3 of 5



Sunwin Internationoal Neutraceuticals, Inc.

September 19, 2008

 

 

SUNWIN INTERNATIONAL NEUTRACEUTICALS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

ASSETS

 

 

 

 

 

 

 

July 31, 2008

 

April 30, 2008

 

 

 

(unaudited)

 

(restated)

 

CURRENT ASSETS:

 

 

 

 

 

 

 

Cash

 

$

7,660,694

 

$

6,811,136

 

Accounts receivable, net

 

 

3,808,388

 

 

4,163,839

 

Inventories, net

 

 

5,013,694

 

 

4,707,043

 

Prepaid expenses and other current assets

 

 

349,802

 

 

264,576

 

Total current assets

 

 

16,832,578

 

 

15,946,594

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, net

 

 

14,188,808

 

 

14,151,293

 

 

 

 

 

 

 

 

 

Total assets

 

$

31,021,386

 

$

30,097,887

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

2,757,071

 

$

2,649,817

 

Advances from customers

 

 

5,108

 

 

12,726

 

Note payable

 

 

100,000

 

 

 

Taxes payable

 

 

85,604

 

 

401,808

 

Due to related parties

 

 

431,477

 

 

431,443

 

Total current liabilities

 

 

3,379,260

 

 

3,495,794

 

 

 

 

 

 

 

 

 

OTHER PAYABLES

 

 

157,747

 

 

154,207

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

3,537,007

 

 

3,650,001

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

Preferred stock: $.001 par value; 1,000,000 shares authorized;
no shares issued and outstanding

 

 

 

 

 

Common stock: $.001 par value 200,000,000 shares authorized;
87,006,936 shares issued and outstanding at July 31, 2008 and
April 30, 2008, respectively

 

 

87,007

 

 

87,007

 

Additional paid-in capital

 

 

17,341,813

 

 

17,218,066

 

Retained earnings

 

 

6,623,553

 

 

6,325,919

 

Subscription receivable

 

 

(372,900

)

 

(372,900

)

Other comprehensive income – foreign currency

 

 

3,804,906

 

 

3,189,794

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

 

27,484,379

 

 

26,447,886

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

31,021,386

 

$

30,097,887

 

 

Page 4 of 5



Sunwin Internationoal Neutraceuticals, Inc.

September 19, 2008

 

 

SUNWIN INTERNATIONAL NEUTRACEUTICALS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

For the three months ended

 

 

 

July 31,

 

 

 

2008

 

2007

 

 

 

 

 

 

 

 

 

NET REVENUES

 

$

6,227,872

 

$

4,217,237

 

COST OF SALES

 

 

4,717,667

 

 

2,874,122

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

1,510,205

 

 

1,343,115

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

Stock-based consulting expenses

 

 

123,748

 

 

123,748

 

Selling expenses

 

 

459,336

 

 

576,960

 

General and administrative expenses

 

 

568,168

 

 

359,232

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

1,151,252

 

 

1,059,940

 

 

 

 

 

 

 

 

 

INCOME FROM OPERATIONS

 

 

358,953

 

 

283,175

 

 

 

 

 

 

 

 

 

OTHER INCOME:

 

 

 

 

 

 

 

Other income (expense)

 

 

240

 

 

(203

)

Interest income

 

 

12,611

 

 

25,666

 

Total other income

 

 

12,851

 

 

25,463

 

 

 

 

 

 

 

 

 

NET INCOME BEFORE PROVISION FOR INCOME TAXES

 

 

371,804

 

 

308,638

 

 

 

 

 

 

 

 

 

INCOME TAXES

 

 

(74,170

)

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

 

297,634

 

 

308,638

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME:

 

 

 

 

 

 

 

Unrealized foreign currency translation

 

 

1,185,202

 

 

410,856

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

$

1,482,836

 

$

719,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER COMMON SHARE – BASIC AND DILUTED:

 

 

 

 

 

 

 

Net income per common share – basic

 

$

0.00

 

$

0.00

 

 

 

 

 

 

 

 

 

Net income per common share – diluted

 

$

0.00

 

$

0.00

 

 

 

 

 

 

 

 

 

Weighted Common Shares Outstanding – basic

 

 

87,006,936

 

 

86,824,629

 

 

 

 

 

 

 

 

 

Weighted Common Shares Outstanding – diluted

 

 

87,006,936

 

 

88,517,684

 

 

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